January 5, 2010

 

Philippines feed wheat imports start flowing in

 

 

A total of 250,000 tonnes of feed wheat from Ukraine and Brazil will arrive in the Philippines from this month until March.

 

The volume was contracted last November, when prices fell to US$210 per tonne, including cost and freight, from US$240 per tonne. It is unclear if there will be additional imports for the year, said a private trader.

 

Importers have to pay the 7% duty for the 250,000 tonnes of feed wheat, but even so, the landed cost of the imports was at PHP11 (US$0.24) per kg, at par with the current price of local corn.

 

Last October, a trader said private users of feed wheat are piling up their stocks in anticipation of a shortage in corn due to the destruction of crops caused by the spate of typhoons.

 

The Philippines imported more than one million tonnes of feed wheat last year. Feed wheat, an alternative to corn, became more attractive to traders after the government allowed zero-duty importation of feed wheat from January to June 2008.

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